Touchmedia, a Chinese developer of interactive touch-screen solutions, has raised around $14.2 million in Series B funding. TLC Capital led the round, and was joined by LG I Investment, Mustang Venture Capital, HSR Ventures, Jubilant Worldwide and return backer Qi Ming Ventures.
Touchmedia announced today that they had completed their second round of financing, led by TLC capital, at the end of January, raising over 100 million RMB. Other investors included LG Investment, Mustang Venture Capital, HSR Ventures LLC and Jubilant Worldwide. The Series A lead investors, Qi Ming Ventures, followed on as well.
Said CEO Micky Fung, ''We are delighted at the response and were able to select some very strong and strategic investment partners for the success of the company going forward.'' Added Founder Managing Director of Qi Ming, Gary Rieschel, ''We have a portfolio of over 20 companies in consumer, internet, and healthcare in China. The Touchmedia business model is one of the strongest and we have great expectations for its success in the future.''
Touchmedia will use the funding to expand into a number of cities across China over the next 12 months. Currently they have agreements for more than 80,000 taxis in 20 plus cities, though Mr. Fung advised they would not install in all cities and taxis in the next year. ''Consumers' acceptance is superb. They really like the system and choice it gives them. They understand that it is the only truly interactive outdoor media and they can control it. Independent research shows that 89 % accept and like the touch screens.''
Consumer interviews confirmed this view. Said taxi passenger Mr. Luo, ''I like the section with all the local restaurants and shopping.'' His wife liked the fact that, ''I can get information about cosmetics, fashion, footwear and games when I am usually bored. It's great fun.''
Added Joseph Huang of TLC Capital, “We are pleased to participate in this new round of financing as the lead investor. The interactivity and the consumer control that Touchmedia's products deliver has been the key to the company's success. With product solutions that exhibit proven technology, strong consumer and client support in the last 12 months, rapidly escalating sales and a unique interactive interface that provides exceptional advertising awareness and recall, this opportunity appeared to be the most promising that we have seen in the media sector. ”
Touchmedia is a new media company specializing in interactive touchscreen advertising and the marketing, planning and data services supporting it. Interactive touchscreens are the most effective advertising tool today, because they not only reach out to consumers, but involve them in the ways they find most appealing.